Knowing who owns what, where, and when is getting more complicated daily. Bitcoineer offers traders the best trading resources, lightning-fast payouts, and exceptional customer support to help them along their bitcoin journey. Blockchain technology offers a practical way to track assets in real time with high security, efficiency, and accuracy levels.
The new wave of blockchain-enabled assets allows for the tracking of ownership simply and efficiently. With this new type of accounting structure which tracks ownership down to the individual asset level, banks, businesses, and governments can stop worrying that they don’t know who owns what or if something has been illegally sold off or given away.
Furthermore, the new blockchain-enabled asset tracking will provide a permanent ledger of transfer events. This ledger will go down in the history of the particular asset and can be used at any point in the future should disputes arise.
This level of transparency and security has yet to be seen since the inception of transaction banking. The adage “a picture is worth a thousand words” will never be more accurate than with this new breed of accounting tech. So put, when something essential changes hands, having a way to track it accurately will bring an entirely new level of security and trust to all parties involved. Let’s discuss everything you should know about asset ownership and its tracking powered by bitcoin and blockchain.
The Blockchain and Asset Tokenization:
The blockchain is the first step in tracking assets throughout the supply chain. The blockchain brings a new level of efficiency and security to this long-revered practice by combining the strengths of asset tracking with distributed ledger technology. The blockchain also increases transfer speeds from days to seconds, providing a permanent database for all sorts of transactions. Furthermore, with multiple versions of the asset tracking ledger on the identical blockchain, everyone can see who owns what at any given time.
The Blockchain and Asset Tokenization:
The tokenization process begins by transferring an asset into code which is then stored on a digital ledger or database known as a smart contract. These tokens are then used to represent ownership to track ownership down through the supply chain. This system allows for significant flexibility and efficiency regarding who has the right to sell an asset at any given time.
The idea of asset tracking with blockchain technology is already in practice. The next step, which is sure to come into play at some point very shortly, is the tokenization process which uses blockchain tech to track assets and their owners throughout the lifetime of the assets being tracked. In financial terms, using such technology can effectively remove go-betweens from traditional transactions by having them on the same ledger.
Asset Ownership and Accountability:
The ownership of all sorts of assets is already tracked and accounted for in transactions. The idea of tracking ownership down the value chain has been used for years, especially with the transfer of physical assets. However, the process by which this tracking is possible is highly inefficient and leaves much to be desired from an accounting perspective.
When a property is sold, it typically leaves behind a paper trail of its previous owners, who took possession and control of it at some point during its life. This paper trail was used in the past by various organizations that provided asset tracking services, such as banks or government agencies. Still, these methods are being directly rendered obsolete as soon as people can replace them with blockchain-enabled technology. With blockchain-enabled asset tracking, selling the property to the seller continues. The seller then transfers property ownership to another party who will store or use it. This new party then becomes a new owner and controller of the asset, which can be transferred or sold to a third party at some point.
The Blockchain and Asset Tokenization:
While all parties should be able to see that an asset has been sold at any point down this chain, what happens if something goes wrong? When multiple wallets are involved, accounting for all the assets can get extremely complicated very quickly. The blockchain ensures that any asset transferred will be tracked so that the previous owners can’t simply change the transaction history once it has occurred. With this new system of recording transfer events, anyone can see all transfers of assets at any given time or all ownership events. In addition, any transfer event, whether buying, selling, or giving away an asset, will have a permanent record on the blockchain that you can use at any time should there be a need to dispute ownership.
Simplification of Exchanges and Transactions:
One clear thing is that the global financial landscape will change dramatically as blockchain-enabled asset-tracking systems come into play. By the time asset tracking becomes a global standard, all transactions will be possible on a blockchain. Moreover, the level of trust and safety that this new technology brings to the table is unrivaled by any other system.
The blockchain doesn’t just make assets easier to track; it also makes it easier to transfer them from one person or entity to another. As a result, it drastically simplifies the transaction process for both parties involved and increases overall efficiency.
